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You are valuing Soda City Inc. It has $139 million of debt, $74 million of cash, and 189 million shares outstanding. You estimate its cost
You are valuing Soda City Inc. It has $139 million of debt, $74 million of cash, and 189 million shares outstanding. You estimate its cost of capital is 9.1%. You forecast that it will generate revenues of $731 million and $769 million over the next two years, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 36%, tax rate is 22%, reinvestment rate is 51%, and terminal EV/FCFF exit multiple at the end of year 2 is 10. What is your estimate of its share price? Round to one decimal place.
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